Abstract
Utilizing a panel data set of 42 states over the period 1959-1994, this paper estimates a rational addiction model for liquor consumption for the US. The empirical evidence is consistent with the rational addiction hypothesis proposed by Becker and Murphy. However, the results are sensitive to the assumption of homogeneity across states or over time.
Original language | English (US) |
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Pages (from-to) | 485-491 |
Number of pages | 7 |
Journal | Health Economics |
Volume | 11 |
Issue number | 6 |
DOIs | |
State | Published - Sep 2002 |
Externally published | Yes |
Keywords
- Heterogeneous panel
- Liquor demand
- Panel data
- Rational addiction
ASJC Scopus subject areas
- Health Policy